Posted On: 01/09/2016 6:09:15 PM
Post# of 96891
I caution investors on including a large Revenue number due to the Black Friday/Christmas $99/$25 specials. I believe this is Unearned Income until such time that the Movies are viewed by the Buyer. A systematic procedure will have to be used to estimate on a monthly basis how much of the 100 movies have been utilized by buyers.
Example, a $60 subscription to a monthly Magazine is earned revenue at the rate of $5 per month, the balance is unearned until Mag. is sent out--easier than our situation as its evenly earned monthly. All that being said the cost associated with this is also deferred until Revenue is realized.
Therefore, it maybe determined that it will take 2 years (more or less?) to fully recognize the full amount of this particular promotional Revenue.
Hope this is understandable and of assistance.
Good Luck IMO we have a Gem here.
Example, a $60 subscription to a monthly Magazine is earned revenue at the rate of $5 per month, the balance is unearned until Mag. is sent out--easier than our situation as its evenly earned monthly. All that being said the cost associated with this is also deferred until Revenue is realized.
Therefore, it maybe determined that it will take 2 years (more or less?) to fully recognize the full amount of this particular promotional Revenue.
Hope this is understandable and of assistance.
Good Luck IMO we have a Gem here.
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